The Truth about Auto Salvaging
The Truth about Auto Salvaging
The Truth about Auto SalvagingWhen looking for a car at an affordable price, potential buyers often explore every option available. Some will seek only new vehicles while some buyers will consider used cars as well. In the process, a potential buyer may notice cars referred to as salvage'. Although not unwise in every case, buying salvage cars is not necessarily a smart choice. The car's history and why it was branded as salvage should help the buyer decide.
What does salvage' mean?
When a car is branded as salvage' or given a salvage title' it means that the owner's insurance company as deemed the car to be severely damaged or damaged to the point that it is a complete loss.
How is a car branded as Salvage'?
How a car receives a salvage title depends on each state. In some states, salvage titles are given to damaged as well as stolen vehicles while in some only damaged vehicles receive this brand. On average, damaged vehicles are titled salvage if the cost to replace or repair them is as high as or higher than 75% of the car's market value. There is a 50% to 95% range so the percentage is determined by state regulations.
In some states the insurer has total autonomy when deciding. The process for branding cars as salvage is not rigidly set out. It is possible for a car that requires minor repairs as well as a car with no damage to be branded as a salvage vehicle which is why some people will seek salvage vehicles being sold.
Legal implications for owners of cars given a Salvage Tile':
The basic concept behind awarding a car a salvage title is to keep the car off the road but this isn't automatic. In some cases, a salvage title can be removed if the car passes inspection or is being exported from the US. Cars with salvage titles being imported into the country can also have salvage titles removed. Salvage cars can also be re-titled as rebuilt salvage'.
Vehicles that do not get their salvage titles lifted automatically depreciate in resale value because regulations in some states prohibit their use on public roads. A rigorous inspection process is required to rectify this process, however the car must match industry standards in its respective state. Even after passing inspection, some valuators still award low values to salvage cars while some refuse to value them at all.
Attempts to circumvent this process can cause legal woes although some owners manage to sell salvage cars to unsuspecting buyers using loopholes in each state.
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